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A41/100FDD 2025

HomeWell Care Services — Litigation & Risk

Health & Wellness - Senior Care · FDD Items 3, 4 & 5

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
41 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
31
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$4.8M
Avg loan size
$156K
Participating lenders
9

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 41/100 rating

Risk Score Breakdown

  1. 01MINOR2024 California regulatory Consent Order regarding misrepresentation of financial performance and registration compliance—active regulatory scrutiny
  2. 02MINOR2020-2021 arbitration loss with damages award signals contract enforcement issues and prior misrepresentation claims with area representatives
  3. 03MEDNo Item 19 (Average Unit Volume) disclosed despite $2.19M average revenue—lack of transparency on franchisee profitability metrics
  4. 04MINORUnprotected territory creates direct competition risk from other HomeWell franchisees and company-owned locations in same market
  5. 05MINOR5% royalty on gross (not net) revenues means franchisees pay royalties even during unprofitable periods
  6. 06MINORStrong YoY growth (23.4%) may reflect aggressive recruitment rather than franchisee success—unit growth without profitability disclosure is concerning

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.